Student loan debt can be a trap. If you’re like many Americans overwhelmed by student loan debt, you signed on believing your college degree was the ticket to a more stable financial future. You were led to believe that your student loans were a good investment. Then, reality hit hard.
One recent study showed that median salaries for new college graduates were nearly $1,000 per month less than the typical college student anticipated. That’s a big difference—especially when you’re counting on that salary to pay tens of thousands of dollars in student loan debt.
America is Facing a Student Loan Crisis
Too often, people struggling with student loan debt blame themselves. Some gain a degree of control over their student loans with extreme measures, such as living with family for years after college graduation and cutting expenses to the bone. But, that’s not always possible. And, it’s no way to live.
As of early 2019, about 44.7 million borrowers carried a total of about $1.6 trillion in student loan debt. That number continues to rise. Meanwhile, 5.2 million federal student loan borrowers are in default. Another 6.1 million are in either deferred status or forbearance, which often proves to be a short-term solution to a long-term problem.
In other words, if you can’t keep up with your student loan debt, you’re not alone. And, it’s probably not your fault.
The good news is that you don’t have to let student loan debt define your life.
Managing Federal Student Loan Debt
You probably know that fighting federal student loan debt collection can be tough. While most personal loan debt times out if you can’t pay, there’s no statute of limitations on federal student loan debt. Collectors for the Department of Education can garnish your wages and intercept your tax returns without going to court. And, federal student loans are very difficult to discharge in bankruptcy.
But, even debt collectors for the federal government have rules they have to play by. And, that means opportunities for consumers to push back, challenging both the debt and illegal collection practices.
Private Student Loan Debt
Like federal student loans, private student loan debt is difficult to discharge in bankruptcy. In other ways, though, private student loans are more like other types of personal loans than they are like federal student debt. Private student loans have statutes of limitations, meaning debt collectors can’t pursue payment forever. And, private student loan debt collectors have to get a court order if they want to garnish your wages or other assets.
That means even more opportunity to fight back.
DebtCleanse Can HelpWe’ll give you the strategies and resources you need to put debt collector stress behind you.
When you sign up with DebtCleanse, we’ll team you up with an attorney in your state. Your attorney will tell creditors to direct any future communication to their law offices. This should immediately stop harassing calls and letters.
Your attorney will also interview you and comb through your documents for any violations of the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), Telephone Consumer Protection Act (TCPA), Real Estate Settlement Procedures Act (RESPA) or other federal and state laws. Those violations create leverage to challenge your automobile loan and any other types of debt. If creditors and debt collectors don’t get in line, your attorney will hold them accountable.
Often, debt collectors stop collection action as soon as they receive a letter from an attorney, focusing their efforts on people who are less likely to fight back. And, many consumer protection statutes require debt collectors who break the law to pay your attorney’s fees. So, our members can often resolve debts without paying anything beyond the membership fee.DebtCleanse can put you back in control with creditors and debt collectors.